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TESLA EXPECTING TO TURN A PROFIT, ANNOUNCES NEW FINANCING MODEL

Written by Industry News | Apr 3, 2013

Tesla announced Monday that first quarter sales of the Model S exceeded expectations and the company expects to turn a profit. Tesla expected to sell 4,500 Model S cars, but sales as of April 1 exceeded 4,750 automobiles.

"There have been many car startups over the past several decades, but profitability is what makes a company real," co-founder and CEO Elon Musk said in a late Sunday statement. "Tesla is here to stay and keep fighting for the electric car revolution."

In a move that Musk claimed was "arguably more important" than turning its first-ever profit, Tesla, Wells Fargo, and US Bank announced a financing partnership. TechCrunch explains that the "true net out of pocket cost" for a Model S under this structure would be less than $500:

The company says that this is a new kind of financing product that “combines the surety and comfort of ownership with all the advantages of a traditional lease.” So while this isn’t a straight-up lease, this is a hybrid that is as close to owning one of these cars as you’re going to get without paying cash for it.

Read more about the new financing structure here